LLC or DBA Question

Discussion in 'Ask An Owner Operator' started by 1arko23, May 28, 2022.

  1. 1arko23

    1arko23 Bobtail Member

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    Hello everyone,

    My father-in-law has an LLC and his own truck, trailer, MC number, DOT and other paperwork. He has been running his company for 3 years.
    This year he bought another truck for me to get started in the business. When it comes to the business he wants to be the sole owner of the LLC and suggested for me to open a DBA. After reading about DBA it mentions that my personal property is liable if I set up a DBA.

    Now I’m leaning more towards opening an LLC for myself to protect my personal property and have tax advantages as a business entity. I am the one paying for the truck and Insurance and also paying back the down payment he put down.

    As my own LLC, can I still run under his authority (MC and DOT), or will I need a whole other set for myself. I am also looking at creating a lease agreement to take over the truck in couple years when I can show income and put the truck and trailer in my name.

    Any advice is appreciated.

    Thank you
     
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  3. Phoenix Heavy Haul

    Phoenix Heavy Haul Light Load Member

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    I’m pretty sure you’ll have to have your own authority that match’s your LLC.
     
  4. God prefers Diesels

    God prefers Diesels Road Train Member

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    You can open the LLC for tax advantages, but don't think for a second it will protect any property. In a lawsuit, the LLC, you, the driver, and your second cousin twice removed will get named.

    You'll only need a lease agreement to get leased onto his numbers. Get in touch with OOIDA.

    @Ridgeline
     
  5. Siinman

    Siinman Road Train Member

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    LLC and or DBA is not gonna protect you from anything if you are the driver as well. LLC filing as a sole is nothing in tax advantage either. If filing as a S Cord then it would be able to save.
     
  6. Judge

    Judge Road Train Member

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  7. Ridgeline

    Ridgeline Road Train Member

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    Won’t protect your personal assets no matter what. Many say it will but they never had to deal with ambulance chasing scum lawyers who investigate you and your family to find all your assets, the only thing that is off limits is retirement funds.
     
  8. RunningAces

    RunningAces Heavy Load Member

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    Look into things like trusts and umbrella insurance to personal assets. LLC isn't going to help you much in that department. I set up as an LLC but wish I hadn't bothered because I am not interested in hiring other drivers and neglected to file as an S Corp. LLC is just another fee to pay every year if you stay a one man show.
     
  9. xsetra

    xsetra Road Train Member

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    You don't get much business tax advantage with an LLC.

    Get a divorce from your wife. Put all your personal assets in an LLC under her name.

    You run the business and business assets under your name. Don't co-mingle funds or have dual usage assets.

    Your question about running with you FIL's authority, just write a lease.
    Good luck
     
  10. Accidental Trucker

    Accidental Trucker Road Train Member

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    Check with a tax professional, but it is my understanding that you can change the filing status (such as from DBA to Sub-S) of an LLC ONCE.

    Or it would be simple enough to close one LLC an open another. If you make better than average income, the Sub-S filing status will save some taxes.
     
  11. ProfessionalNoticer

    ProfessionalNoticer Road Train Member

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    Depends on how much revenue you make yearly. If I were you, I'd start off as a Sole Proprietor. It's easier to handle and you'll be able to get a better idea of the business and your income over the first couple years or so.
     
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